. this is "worldwide exchange." here are your headlines from around the world. powerful 7.3 earthquake strikes japan's northeast coast. tsunami warnings have been issued. job growth in the u.s. are expected to have slowed significantly in november as hurricane sandy battered the economy. and euro hits a session low,

0.4% as problems in europe's periphery continue to weigh. a powerful 7.3 magnitude protesters in cairo have been expressing anger saying a earthquake has struck across japan's northeastern coast. nationally televised speech by the quake rocked buildings as morsi offered nothing concrete far as tokyo according to to diffuse the worst political reports. u.s. geological survey said crisis in nearly two years. there was no threat in the wider pacific ocean. the yen has been rising to a >> mohamed morsi addressed the session high before we got nation, trying to soften his position that has angered details of that. protesters over the last several and right now, you can see days. in fact one of the sticking dollar-yen at 82.39. points that has been fueling 82.17 before that happened. these proce protests has been a decision some safe haven in-flows into that was issued by morsi. japanese currency. today he tried soften his

position by saying that his if there was going to be a wave decisions were in fact subject in terms of tsunami that was to judicial review, but he also going to hit, it would have wanted to try to solve then happened around five, six other positions that have been fueling some of the protests. he said the constitutional minutes ago and she had yet to referendum scheduled for see any specific drop or change december 15th would go ahead as planned, but if it fails, there in the sea level. would be a new assembly. so we'll hope that that continues on that particular more importantly, he's now reaching across the political way. atomic power says no divide to meet with some of the country's political opposition figures. they say they will not irregularities seen at its necessarily meat with the president until that decision, at least that decree, is rescinded. they're still going ahead with calls for friday's million man nuclear plant. operations are normal after the march and outside the quake. so we'll keep our eyes on that. presidential palace, hundreds of and we'll see if there's any protesters gathered for a third straight day following two further reaction, as well. deadly days of clashes. >> egypt opposition has said it hurricane sandy is expected to have put a big department in the has form and i lformally reject jobs report out at 8:30. expected to rise by just 80,000.

it would be the smallest job request for dialogue. growth in five months. sandy battered the densely ibm will now only make populated east coast, but matching contributions to its economists expect a snap back in 401(k) accounts once a year in a december. the the unemployment rate, lump sum payment. it's the latest in a series of that's seen holding steady at moves by companies to rein in retirement plan costs. 7.9%. what do you think the number will be? send us your predictions. you can e-mail us, ibm stock in frankfurt today worldwide@cnbc.com, tweet @cnbcwex, or even get ticking a little bit higher up direct to myself, @rosswestgate. three quarters or two thirds of 1%. the netflix ceo has received a wells notice from the sec, and while we wait for the saying it may take action employment report, more thoughts against him for potentially about where european growth is going. violating fair disclosure rules drifting away. the bundesbank has warned of a with a facebook post he made in possible recession in germany. july. hastings boasted the netflix central bank cutting its growth topped 1 billion hours of streaming video in a month for forecast for the eurozone's the first time. biggest economy and that expects hastings responded saying a press release wasn't necessary growth to reach just 0.4% in because his facebook page is a 2013. a big cut from previous public forum with more than forecasts of 1% and 1.6%. 200,000 subscribers.

he also says the information wasn't material because netflix had mentioned it on its own blog in june. netflix stock down three there's also no political crisis quarters of a% in frankfurt. and google is closer to in italy by the way. selling motorola's cable set top box business. the "wall street journal" support has been withdrawn for suggests final bids must be in by today. google's been shopping the unit for months. bids could reach as high as $2.5 the group run by monti. billion. journal says both private equity berlusconi hinted he may return firms and cable and video equipment makers expected to to politics after stepping down make offers. last year. google stock in frankfurt down claudia joins us in milan. 0.4%. and after several days of public a number of reports suggested pronouncements and posturing, this may not upset investors too much just because we were going budget talks have privately to have elections anyway, it resume between the staff of john boehner and the white house. doesn't bring it forward a lot this breaks a near week long silence between the two sides as earlier. is that the sense that you're getting? the deadline to avoid the fiscal >> yes, it doesn't really change in terms of the timing. cliff looms. president obama and boehner it just gives you an idea, spoke by phone on wednesday and though, of where berlusconi promised to renew the stands and what the situation is like within that central right negotiations. hurricane sandy expected to put next. the pdl has made it clear that a big dent in the u.s. jobs

report out at 8:30 eastern. there is a serious disagreement nonfarm payrolls are forecast to within the party. they were set to go forward with have risen just 80,000, versus some primaries which is what the center left did to elect their 171,000 in october. it would be the smallest job candidate. and now that berlusconi has growth in five months. abruptly announced that he's sandy which truck strustruck at going back, that tells you there of october battered the east is a lot of tension. coast, but economists expect a snap back in december. unemployment forecast to hold he's trying to define the steady at 7.9%. support, enough support in order and besides the jobs report, to have some say in parliament even after the elections. other items on the agenda in the an apparently he probably was not able to get that within his united states, two other pieces of economic data, the first is own party. the read on december consumer as far as the situation overall sentiment, due out at 9:55 is concerned, we did see the eastern. forecasts call for sentiment to spread go higher and there are slip to 82 this month down concerns. the minute you touch this jittery topic of the politics nearly three months from november. here in italy, the market gets and at 3:00 p.m., we get october very, very concerned. consumer credit. as far as futures right now so what has come out officially ahead of that report, they are called for slightly downward by the president of italy is start to u.s. programming. that he's officially not calling right now the dow is some 12 a consultation for monti at this points below fair value. the nasdaq is currently gist point. his statement last night was that he wants parliament to act over three points below fair

value and s&p 500 about one responsibly and sensibly. point below. so right now he's just making todd horowitz joins us now. this warning. so so at this point, there is good to see you. not a crisis in the government, but the pdl dismantling the party and creating tension. a little earlier he said he >> claudia, who at the moment thinks 40,000 and hurricane sandy has had a bigger impact is -- which of parties would get than consensus. would you trade it that way or the most seats in terms of polls and stuff in who is leads and not? >> i think the number here would it benefit them if we had really doesn't matter. i think that it will probably beat, but i think the overall market -- the market is already built in and anticipated that early elections? we'll have a decent number. >> it doesn't look like there would be a lot of change, but if we're much higher than the upper the pdl doesn't have time to get p of our near term range. an alternative, it just leave as i think we'll beat the 08,000, stronger center left which but afterwards a little bit of a selloff anyway. if we beat it handily, we'll get showed a very positivout come the way it managed its primary. a big rally and then a selloff. so they have the majority, the >> it's all about what we priced

in. what about the breakdowns? center left. and the green leaf party is after that which just takes away >> i think all the numbers will from the center right government. so at this moment, it is the fit. we're pretty accurate. center left. >> claudia, thanks for that. there's very few real surprises. the only real surprise is what the street expects versus what the number actually comes out let's get to today's global at. there's a wide range of numbers that are all over the land here market report. and once they come out, they equities in europe as you can see weighted to the down side around about 6:4, decliners will be pretty much in line and i think will probably just beat outpacing advancers 3:2. that kind of ratio. across the board will be my show you where we stand with european markets. guess. >> and even if it's a weaker number, people expect a bounce ftse 100 just down three points. xetra dax flat. back anyway. it's a one month bad number because of the storm. up 27% this year, at the highest >> they have a built in excuse that the storm was here. levels now since 2008. fresh 52 week high we closed at yesterday, as well. what you really want to look at is the market is expectation. cac 40 up between points. down 27 for the ibex. and because of the market being up towards the upper end, so very cautious trading. because the market is basically rallying here, you want to say they're expecting a good number,

we have industrial production coming out of the uk. the difference is will they get what they expect or will they be if worse than expected, may get a negative q4 for the uk. disappointed. >> and we're up 12% on the s&p. we're going into year end and we still have the fiscal italian yields are higher. discussions going on. once we get over this number, then what happens? spanish 5.54, just nudging a >> i think the fiscal cliff is little higher. bunds down 1.29d% after the also taken care of already. downgrade by the bundesbank, as well. draghi says we discussed it and i think you're just seeing a lot again a big town great in of political posturing. inflation forecast, as well. when they walk arm in arm on some saying maybe they still december 31st saying we solved won't, but it does knock the the problem, that will be taken care of. i think probably we get a little euro-dollar, 1.29d 25 is where selloff and towards the end of the year, the santa claus rally we stand. dollar-yen 82.37. and probably close the year we talked about the yen in relation to what was going on right around here. >> thanks for that. with the earthquake. todd horowitz. aussie dollar below 1.05. that's it for "worldwide exchange" this week. "squawk box" is coming up next. sterling-dollar just slightly weaker. we wish you a profitable trading that's where we stand as far as the european markets are day. concerned. let's get a wrap of the final

trading day in asia this week. >> asian markets wrapped up the week on a mixed note. shanghai composite gained 1.6% and it's up over 4% on the week. stocks related to citi growth continued to surge as the new urbanization plan is aiming to boost investment plan. agriculture stocks up today on support policies. hang seng dragged lower by utility stocks. picc staged a strong trading debut gaining almost 7%. biggest ipo in two years with analysts expecting the stop stock to be included in major benchmark indices very soon. nikkei pulled back from its seven month low, but sharp

shares soared over 8% adding to yesterday's 10% rally. investment talks are still on. south korea technology shashs and ship builders lent support to the kospi, but automakers were in reverse gear. us a railian equities up nearly 1% today with miners and banks ending higher. sensex trading lower by 0.2% back to you. getting reports in from reuters that the tsunami measuring about a meter high is hitting the meyagi prefecture. just getting the report in this report. i don't know whether you can confirm or support that, amy. >> we don't have any information about that. we do however know here in the united states we work with the pacific tsunami warning center and at this time, they have not

you issued any warning watches or alerts for the united states areas. but they don't control what is being monitored in japan. >> nhk suggesting that is going good morning. it's jobs friday again. the november employment report due at 8:30 eastern. on. would that tsunami wave economists say super storm sandy correspondent with the size of likely put a dent in employment quake? >> it certainly could given the location and given the growth. the fiscal cliff still looming. new survey finds more than half magnitude, that's certainly possible. we're not the people who issue of leading investment those alerts and monitor the professionals expect a deal, though, before year end. situation, but i'm sure we'll be hearing more about it that from but it's their opinions on what them. >> what you can tell us about happens if a compromise isn't the quake? reached that is troubling. and sec warning to netflix raising questions about how >> it's 5 e7.3, occurred 240k y kilometers southeast japan, the epicenter. and it was fairly far offshore. however, we are getting a lot of reports coming in from the island of honchu mostly and those are reports are coming in

as high as five and six modified mercoli, which means definitely perceived shaking, minor damage, possibly things falling off of walls, possibly some cracks in foundations and such. we haven't heard any direct reports that that would be expected with those kind of reports. >> bearing in mind the devastation from the earthquake last year, is anything different sort of a year on in terms of how we assess what happens and the reaction? >> certainly this magnitude is lower which is good. i think that will help -- again, we're not the tsunami experts, but hopefully that would mean left potential tsunami. all right indicating one meter. and less potential for structural damage on the island. >> okay, thanks for that, amy.

good to speak to you. aaron, nhk is reporting a one meter high tsunami wave. what are the nuclear authorities and energy authorities saying right now? >> we just reported that, that's right, that's coming off nhk. what we're hearing from all the nuclear operators, that all northeastern stations are operating normally or all shut down actually. nuclear power says there is it no spike in radiation levels. and the one so badly damaged last year, there's been no changes with the cooling system and no irregularities inside the reactors. and the station nearby, a similar story.

and that extends to the other stations up the coast. >> reuters is now quoting saying tokyo electric power has ordered workers to evacuate the fukushima nuclear plant. would that be a standard procedure or not? >> we're checking in with them. my guess would be a precaution. because there is a tsunami warning out. but it would be nothing of the magnitude of last year's tsunami and i doubt that it would affect the plant. having visited the plant myself. >> and we know the damage that happened last year. how has that left the -- how has

it changed their approach to an earthquake and tsunami warnings? >> the first serious tsunami warning for a while, but whenever there's a quake, they're very quick to show people-will-to check the plant, check everything and assure the public that things are find, they have generally been fine. should be said, of course, the plant is still in a precarious state, so they're always at a height ended level of alert or so they tell us. >> when you say precarious state, explain what that means. >> precarious in the sense that it doesn't have a proper cooling system like a normally operating plant. it's still very much a sort of make shift system.

it occasionally has leaked, but in general the reactors are being kept at a safe temperature since december last year when they declared cold shutdown. which was when they declared the plant safe. >> okay. aaron, we appreciate you joining us on the telephone. we'll keep monitoring events. thank you for now. we'll keep our eyes on those reports of one meert wave. meanwhile, samsung and apple are back in the same silicon valley courtroom to try and duke it out again. but whose legal engineers can produce successfully as their electrical engineers? cheri, i hope samsung hoping they might get that $1 billion sort of fine reduced. what are their chances? >> well, that's exactly what sam sink is trying to do, reverse

engineer the august ruling to find mathematical flaws in the calculation. with reuters reporting they were questioning the basis for some of the damages, quoted as saying i don't see how you can evaluate the aggregate verdict without looking at the pieces. now, apple is arguing that samsung copied some of its critical features and is trying to win a permanent sales ban on samsung products. we're talking about 26 of their products. most of the devices are older samsung models, but a number of observers say such injunctions have played a key role in the past. because of the complexity of the case, it looks like it will take

weeks or even months for the judge to rule on all matters. today's hearing concluded with a promise to rule at a later today. so it looks like the case that has dragged on for more than a year now may still have legs from here. back to you. >> thanks for that. still to come, walking in the foot steps of somebody. of a legend. yeah, we'll speak to tim cook about continuing the legacy of steve jobs. plus chinese insurer picc put some spark back into the dismal, the big potential in the insurance. plenty more to come. having you ship my gifts couldn't be easier. well, having a ton of locations doesn't hurt. and a santa to boot! [ chuckles ] right, baby. oh, sir. that is a customer. oh...sorry about that. [ male announcer ] break from the holiday stress. fedex office.

we continue to monitor reaction to the earthquake and tsunami wave in japan right now. miyagi northern prefecture region. and we got a clarification from one of the plants. tokyo whether he can power saying workers instead of evacuating completely, the plant saying they have now reached a position inside the plant, they didn't evacuate.

so they just made sure the workers have gone into a safe position. we'll keep monitoring events and any reports we get out. meanwhile, with germany's dax closing near five year highs, is it time for a rerating of european equities? highest close since january 2008. up 28% for the year, giles. and here we are with the bundesbank drastically cutting their forecasts. ecb doing the same. what happens now? >> i had still be reasonably constructive. the dax double what we've seen the s&p doing in the states. and i think both the dax and the s&p can put in a respectable performance next year.

economic growth isn't the totality -- >> what about earnings growth? >> i think earnings growth, we've obviously been through a phase where analysts were revising down and i think there's a lot of signals that that's now coming towards an end. and i think we can see earnings growth next year. germany after all very much about exports. >> exports a lot of them to the rest of the eurozone. >> to the eurozone, but of course also to asia and to the u.s. and i think the u.s. certainly has potential supplies to the up side here. >> what will that be based on, is that based on some things that have been drags, actually not being drags like the housing market, i suppose? good housing market has taken off very nicely in the u.s. doing great in germany. let's not forget that. and i have to say, i think the bundesbank is overegging it a bit here on the negative side as is the ecb. very dramatic swing round in those gdp projections. >> the surveys have been very

dramatic. surveys are pretty grim. >> one of my favorite charts at the moment compares germ man industrial production with the german purchasing managers. purchasing managers sags and disappears and production has a very brief dip and then recovers quite nicely. i think people get all the bad media and they kind of think the form a bit biased. >> a production numbers for you are much more important. >> production numbers are giving you a much clearer story for sure. >> so bear in mind, it doesn't really matter whether you get a santa rally because if you were engaged from the beginning of the year, you would take the gains that we've had. >> obviously you've done very, very nicely. we're certainly weighted toward the dax it's clear. >> so what happens to earnings? i'm interested, you know, to earnings here because can corporates maintain their share

of gdp? they have a pretty big chunk of it at the moment. whatever gdp there is, they have a big chunk of it. >> i think that's a very fair comment. the way i would phrase it in germany is to say that you are finally getting pressure on labor costs there. because the economy has been doing really very well within europe. so you could see german margins under a little bit of pressure, but then that could also suggest as i say that some of those projections for the german economy are a bit -- >> what assumptions are you making in this about the fiscal cliff and about further risks from eurozone financial crisis? go . >> we know the markets are driven on a minute by minute basis, but if we just step back from that, the chances that in two to three months from now, obviously we could briefly go over in january, i think that's unlikely, the chance that we'll really have the u.s. economy squeeze by 4%, 5% of gdp, i

think it's incredibly unlikely. >> what are you assuming about the ongoing eurozone -- >> the eurozone, if we go through a series of ticks, we have had a lot of progress this year. you have to be clear about that. and not just with all the various government actions. look at wages in greece and now spain. wages in greece are down more than 25%. very painful, but we've heard about the pain already. what we haven't heard so much about is the competitiveness. >> enor husband costs with incredibly high unemployment rates. >> that i'm afraid is what's going on and that's extremely unpleasant. what i'm saying in terms of market action is we know about that, we're focused already on the unemployment, we're not focused on the wage improvement in competitiveness. >> all right giles, more to come from you you. also we'll hear from the stars of les mis about why the classic

story will resonate with the current economic climate. and later in the program, we'll also hear from the nigerian finance minister about the resources boom. but you what about the corruption issue. and we'll also hear first from apple's new ceo tim cook about steve jobs' legacy and his future plans for the tech giant. plus of course we'll continue to keep you updated on the reaction and the latest dealings from the earthquake in japan.

a 7.3 magnitude earthquake strikes the northeastern coast of japan. u.s. growth expected to have slowed significantly in november as hurricane sandy battered the economy. and euro down to the session low after the bundesbank sharply lowers the growth outlook from 1.6 to a mere 0.4%. and new life into the ipo market after a bit of a funk for most of the year.

latest manufacturing output down 1.3% on the month, down 2.1% on the year. much weaker than the forecast minus 0.3 and minus 0.2% on the year. industrial production down 0.8% on the month, 3% on the year. the reason is oil and gas extraction down 26.9% year on year, the biggest fall on record. now, we were told about this by alan clark yesterday. he said no one's factored in that the buzzard oilfield has been out of action. so we were going to get a sharp drop in industrial output, much worse than expected. and with manufacturing output, as well. so, yes, those numbers are much

worse than expected. it is dragging sterling down to 160.127, but it is down to the buzzard oilfield being out of action. the key thing here, giles, is that it will do, though, is probably weigh in on the q4 numbers. doesn't matter why, but that it will impact gd. and we'll be getting headlines of triple dip. >> it's interesting in the chancellor autumn statement, really stressing that a lot of the weakness in the recovery in the uk has been due to the oil and gas sector and indeed to banking. so saying focusing on the rest of the economy. so this is as it were monthly noise, but it emphasizes how volatile that component is.

>> look at the industrial numbers for germany, and here we are with a pretty awful southwest industrial numbers for the uk, but of course things aren't what they seem because of the fluctuations in shut downs in oil and gas production. >> perhaps people forget how important oil and gas still remains in the uk and of course the government trying to create a new kind of boom with shale. >> do you think that will have a meaningful impact? >> i think there's a good chance of it it. if we look at what it's doing in the u.s. economy, it is phenomenal. some estimates think it will add 0.3% per an mum to growth over five years. the uk probably doesn't have quite that potential, but it could still be significant. >> all right. thanks for that. more to come in just a second. so very poor industrial manufacturing, down two shut downs at the buzzard oilfields. so not necessarily what those figures seem at first glance.

european stocks down marginally. ftse up nine points, xetra dax at pretty much the early 2008 level. 7530. my eyes are going. it's age. right. let's just recap what else is going on. y yen rising to a session high. at the moment 82.38. let's get more on the market reaction from the nikkei. >> hi. a very strong earthquake hit at

5:18 p.m. the center was closest to miyagi prefecture. it had an estimated magnitude of 7.3. tsunami warning was issued for miyagi prefecture and around 6:00 p.m., a one meter high tsunami was recorded. tokyo electric power, the operator of the fukushima nuclear plant, reported no irregularities. a strong quake was also felt here in tokyo, lasted for several minutes and causing buildings to sway. but no damage has been reported so far in tokyo. back to you. >> all right. thank you for that. meanwhile a big stock market debut if picc. shares up after more than $3 billion in hong kong's largest offering in two years was raised. priced at the low end of their range, shares 17 times he oversubscri

oversubscribed. strong demand also helped turn away the ipo market. picc stellar debut also reflects perhaps the grand demand for insurance products. eunice yoon has more. >> in the u.s. to protect against disaster, americans take out insurance to rebuild their lives. but in china, no such luck. after beijing's worst downpour in decades washed out this home, he and his wife had to borrow $3100 in friends and relatives to rebuild, a small fortune on his meager salary. there's no such thing as homeowners insurance, he says. the industry here has been agreeing over the past decade, but still underdeveloped with private policies largely a foreign idea. in countries like the united states, homeowners insurance replaces pretty much whatever somebody owns. about you but here there is no such guarantees, so people are forced to salvage whatever they

can on their own. as more chinese get richer, many are looking for ways two o prot their wealth and lives. >> people are some savings, a first car and all that, typically insurance product is actually a very good product for them. >> right now car insurance is popular. china is expected to become the second largest insurance market behind the u.s. by 2020. and the competition is fierce, still dominated by chinese players like picc. international insurers face tough regulations, though many want in. despite its communist ideals, the state offers virtually no social safety net. after the rains, he and his wife couldn't work and had to clean up their house on their own. i just rely on myself, he says, at least 90% of the time, you have to rely on yourself.

a mentality insurance companies hope will build up the culture in china. >> phillip, what will this ipo do for investor confidence, if anything? >> i think the fact that it got off okay and after a long pitch, i think it will be good in boosting confidence in ipos, particularly big ones. however, we're only just coming back into launching ipos in hong kong after a very difficult time. and i think it's still going to be case by case basis. i think there are some attractions to this one, but there are others coming up, maybe they're not so attractive. so it's really going to be case by case in the short term.

>> priced this one to go, though, didn't they. >> people in the market know they were trying to launch this about six months ago and it's basically half the size of the issue. they've boosted it by getting in investors and also arranging a lot of underwriters to get it off the ground. so given all these factors together, it's helped the issue, so therefore it's been a success from that viewpoint. >> a share still pretty depressed. is it going to be any different going into next year? >> i don't think in the short

term, no. we may be reaching an in-fwleks poin point. there are a lot of structural problems there. i think that the government is -- they won't come to boost markets, but they may say some more positive things and maybe change some issues to do an investment in the short term, which may help boost the stock market. but we don't expect very big boosting. probably just on the fringe. really you've got to get confidence of the retail investors in china to help that market. and that will take time. it's not going to come overnight. >> phillip, i totally agree with you that obviously the a shares have lagged, h shares are completely different hear. but is it likely do we think that over the next, say, six

months we'll get more ipos? i thought the news clip was very good drawing attention to the strong middle class, whether it was insurance, many aspirational products. and its official policy of course as well to boost the consumer. doesn't that actually open up quite a lot of interesting opportunities there where companies may be trying to capitalize and come to the market? >> that's correct. the problem is -- just two issues. in the asian market, there's supposed to be upwards of up to about 800 companies on the waiting list to list. they will be of variable quality for sure. in hong kong, it depends on how fast the underwriters can move in terms of issuing or sort of preparing these companies which may be of interest. but the problem -- i mean toib investors.

but the problem is there's a lag time of six to nine months before they can get these issues going. by it that time,o interest may have waned a little bit. but that's the way this game is played. so they have to try to launch more companies more in line with the interests of institutional investors. >> okay. phillip, stay there, we'll come back to you in a second. investors also waiting on hopes of key chinese economic analysts out this sunday, expecting they to come in on the up side because of beijing's pro-growth policies. at the same time, inflation likely to pick up, lowering the chances for more government stimulus. phillip, do you agree with what i just said or not? >> well, we don't think that there will be enormous stimulus

coming from the government. recently -- up until recently, they had been reversing it with reverse repos and they are slowing that down now. the economy itself is beginning to pick up export, retail sales, et cetera. so i think by itself, it's starting to pick up, albeit very slowly. i think that will mean less need for the government to bring out stimulus measures. i think they may bring out piece meal stimulus measures over the next year, but not to the same extent as even -- certainly not since 2008. maybe something along the lines that we've seen over the last 18 months. >> the anythings that impressed me most some of the export data really quite dramatic recoveries after that soft spot across the summer months.

what's your feeling there. >> you're going to be seeing the export figures probably pick up more, but we see incremental growth, we don't see big jumps in growth. one of the other reasons why i was saying that there is no need for stimulus is because of the government is fearful of inflation coming back. they spent a year softening the market because of inflation. and so if there's a little pick up, definitely there will be no stimulus to the economy. so it's picking up on its own, but it will be slow and measured. >> all right. phillip, good to see you. have a good weekend.

thanks for joining us. not long to go before christmas, i know because i haven't bought any presents yet. but what are you supposed to do with your portfolio? are stocks going to get a santa rally or not? ritchey cunningham is with us. rich, you should know giles has already said stocks will look good next year, but we'll look at the next month. here's the dax sitting up 28% this year. highest level since january 2008. >> no pressure for me here. i think a slight issue with the dax and in fact with the ftse to some extent. they've done what we expect them to do or hope them to do coming november, december. what we've seen in the past two weeks is pretty much the december snapshot all compressed in to one. so it makes it harder to call. but on balance, we still think that the year will go out with the dax probably not breaking particularly new fresh ground,

but probably trading slightly higher, maybe up around the 7600 area at most. but probably not much higher than that. >> is that a double stop? >> gone just above it, but not convincingly so. it is not quite as compelling a buy as it was maybe three weeks ago. ftse slightly less obvious because we've got a little bit further to go on the up side in comparison to the 2012 highs. >> 2% on the up side there to take it up to the 2012 highs. so not quite as a clear double top, but, yes, they've both comes pretty close to their tops in 2012. but after that, all bets are off. >> say we do get resolution of the fiscal cliff issue before the end of the year. isn't that going to probably give a bit of a fill to markets

all around? >> should be a bullish or supportive development, but i think it will probably rans late more into the u.s. indices. i think we've seen quite a bit of the movement already. there was a comment the other day about relative under performance on the s&p and dow. s&p 4% or 5% relative to where it was. i don't really see it being clear cut. i think you probably stay long equities, probably still pick up the u.s. indices on short term weakness, but you don't hang around for too long. >> a couple individual stocks? >> yeah, bg has a vision of the

market in terms of we could be going lower or up, but two stocks which have had sharp down move. bg it was a news driven event. but the big thing with bg is we have a long term structural up trend. so looking at that time more from a chart driven perspective. but if you look at the chart within year, ten year, three year time frame, around 1040, 1050 area is pretty big area of support. we've been saying to people from a technical point of view, if you're buying bg anywhere between 1050 and 1070, you can have a stop loss around 1080, you could have a long term core spread or you could go out right on the stock. but we see a gradual reversion. we could take it past 1140 1rks

, 1130. with mann gro group the trend h been more aggressive. so calling it is difficult. but the more recent term price action we've seen in man group in the past two months in particular does suggest to us technically that we're beginning to seat stock phase out. moving around a bit, so not for the fainthearted. not something you would put a large allocation in, but it is liquid. so we see value in it. >> and you have positions in both these stocks. >> for clients only. we have no individual relationships. >> it's interesting to be looking at these opportunities at this particular time, but i have to say the other danger as

we come into year end is as we all know, it's not all good news you can certainly get some quite strange movements around year end. so i don't know whether does one want to take on even however good those calls are. >> i think what's interesting is you touched pop the risk factor, it's worth pointing out how low both the vix and the vdax are. we're in the situation where the vdax is trading at a level year low now. >> cheap so may as well pick them up. >> buying the vix gepts it agai probably a compelling play. >> good to see you. we all did our shopping online now, so slightly more relaxed. giles, good to see you, too. a good christmas to you if you're not on in the next two or three weeks. i don't know how the scheduling

works. still to come, we'll hear from huk jack man about why the new block bus it ter les mis resonates in the current economic climate. >> occupy movement was organization arab spring movement, the the recession, the disparity of rich and poor seems to be ever growing and sort of what he was talking about at the time. i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express december 22nd [ male announcer ] break from the holiday stress. for christmas delivery.

budget talks have resumed between the staff of john boehner and the white house. "wall street journal" says this creates a ne crea breaks a near week long silence as the fiscal cliff looms. they promise to renew the

negotiations. and are you earning $250,000, worried about having to pay more tax? you may be able to earn up to $300,000 and not have to hand over more cash to the irs. head to cnbc.com for more. and victor hugo's classic thofl about life, love and hitting the big screen. carolyn went to speak to the stars of the film to find out why the classic story still resonates. ♪ >> i think human truths are human truths and there's also a certain cycle to the world. >> just a look at the world and humanity, and we'll always be moved by a passion for fighting for what we believe in, we've always been moved by love. >> the power of redemption are

all themes that transcend time. >> les mis has been performed 10,000 times and seen by 16 people worldwide. and now it's a major motion picture featuring hugh jackman and anne hathaway. so what does it take to transform wolverine and cat woman into the iconic characters. >> i wore contact lenses to get the redness in the eyes. i spent time in a prison here in london just to talk with police they ares a prisoners and soak up 59 atmosphere. >> there is a moment when most female would drink, your hair shopped of a. was it real? >> all of a sudden it was the day that they were going to cut my hair and it hit me at once. and i was very fragile that day and i was a total wreck. >> what stands out about this

moof have i a movie and the story line is the hardship that goes through to the very end. do you think it will resonate with the audience? >> while we were making the film every day going to work reading the newspaper, there was something relevant in the headlines that related to what the film was about. so in my character's point of view, the student rebels starting to slight this flame to start a rebellion, whether what was going on in wall street or the support in london or the middle east, it felt relevant. >> of course the occupy movement was organization the arab spring movement, the recession, disparity of rich and poor seems to be ever growing. and it's sort of what he was talking about at the time. i think probably in fact almost anybody in history and the future, victor hugo's novel will be relevant. where will it send me...

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this is "worldwide exchange." i'm ross westgate. a one meter high tsunami hits the ming a sgi pre miyagi prefecture as a 7.3 earthquake strikes. job growth in the u.s. is expected to have slowed significantly in november. and bundesbank sharply lowers

germany growth outlook for next year, down to a mere 0.4%. very good morning to you. slim gains yesterday for u.s. markets. right now we're called marginally higher. pretty flat opening actually. dow seven points below fair value. the nasdaq mini currently some four points below fair value and the s&p 500 also about 1.4 points below fair value, as well. so a cautious start. ftse yesterday up nine. right now flat. xetra dax currently just down four points, but it's at levels

we haven't seen since january 15, 2008. and up nearly 28% this year. cac 40 up four point, ibex down half of 1%. despite sharply lower growth forecasts from both the ecb and the bundesbank again this morning. what it has done of course is help push down yields on bunds. you can see here this morning we're slightly higher on the session, but 1.30%. spanish yields a little bit higher, 5.54. berlusconi's party looks like it's withdrawing support from monty ig government. italian yields are right now contained at 4.58%.iy ig govern. italian yields are right now contained at 4.58%. ig governme. italian yields are right now contained at 4.58%.ig governmen. italian yields are right now contained at 4.58%. government. italian yields are right now contained at 4.58%. weaker than expected manufacturing levels. temporary factors, but it may well impact the fourth quarter gdp figures.

so there will be talk of risk of a triple dip in the uk as a result. euro-dollar already weakening substantially after trichet was pretty bearish with their forecasts. they didn't cut rates. let's get a recap then on what's happened with the final trading day of the week. in asia, the final time this week. >> thank you, ross. asian bourses finished the trading week on a mixed thoet. shanghai composite gained a strong 1.6% today and up over 4% on the week. stocks related to infrastructure xwr growth continue to surge after they look to boost inventment demand by over $6.4 trillion over the next decade. agriculture stocks surged on supportive policies. the hang seng was dragged lower

by utility stocks, but a strong trading debut of picc. that is hong kong's biggest ipo in two years. and the nikkei edged lower from its seven month high as investors booked profit ahead of the u.s. jobs data, but sharp shares soared over 8% after taiwan said investment talks were still on. south korea losses in automakers were offset by gains in technology shares and ship builders. meanwhile australia's asx 200 up nearly 1% today with miners and banks gaining knmomentum. sensex lower by 0.5%. >> thank you for that. a one meert high tsunami has hit the ming a sgi prefecture in japan after an earthquake struck. the quake rocked buildings as

far as tokyo. all nuclear plants and refiners are operating as normal. we did see the dollar yen hit a session on -- or the yen hitting a session high. we have a little bit higher, the yen right now, 82.37. peter styles is joining us for more. >> we've had six earthquakes, decreasing in magnitude. we had the 7.3, a lot smaller than the one which devastated japan on fukushima. it's probably at least 500 times less in energy. and so we've had a sequence of 7.3, 6.2 and then going through

5.5 down to 4.8. so a cluster of earthquakes. they're relatively shallow, which means they're at the outer rim of where they're generated, which is why probably the devastation isn't enormous. and the earthquake mechanism is one which would tend to generate a tsunami. but the reports seem to suggest that it's about one meter high. perhaps a little bigger. these things vary depending on the shape of the coastline. >> what is the key determinant predicting how big a wave that you you get? >> it gets complicated because obviously the bigger the earthquake, but one of the most important things is the direction the earth moves. we've had some very, very large earthquakes including off

sumatra where we expect differen effectively get side way slip. this is what we call a thrust vault where one side moves up with respect to the other. and those are always very tricky. because that moves the sea floor up and that sdw generate a tsunami and that's why we've seen the one meter tsunami. they're focused by the shape of the coastline, so you can get variations which are quite considerable just from the all shape of the coast. >> thanks very much for speaking to us. peter styles joining us. so fortunately looks like very little damage at the moment. we'll keep you informed of that. meanwhile, there was plenty of damage from hurricane sandy and that's expected to have put a big debt dent in the november j report. reported to raise just 80,000. it would be the smallest job

growth in five months. sandy which struck at the end of october battered the densely populated east coast, but economists expect a snap back in decemb december. unemployment rate seen holding steady at 7.9%. patrick o'keefe, joining us as he does how for most jobs fridays. patrick, very good morning to you you. always good to talk to you on these jobs fridays. bearing it in mind the impact of sandy, are we sort of not reading too much into today's figures? >> sandy is really going to democrat nature the data this month. we've seen that from past weather events that have had really a direct regional hit as we saw in 2005 with katrina and rita hitting the gulf coast. but they both have been so disruptive that we'll see in the national data. i think the consensus forecast is probably a little higher than what we're going to see. i'm expecting that we'll see a net gain of about 40,000, down

from the 170,000 we've averaged over the last three months. and the unemployment rate will probably tick up to 8.1%, all of that reflecting sandy's impacts. no change in the underlying trend that we've been on. >> so your forecast is lower just because you think sandy's had a bigger impact than consensus. >> absolutely. when we look back katrina and rita are a good reference point. in the two months immediately after those hurricanes hit the gulf coast, the rate of job creation in the united states, we had a robust economy back then, dropped by 75%. the northeast is a larger portion of the united states economy. the hit that we took from sandy in terms of economic effects appears to be larger. so i do think that we'll see a sharper falling off in employment growth than is generally anticipated. >> what happens to sort of

government employment versus sort of private? >> i think the public jobs had sgroen in the earlier two months. we saw a little bit of a pull back in the october data. my guess is in the immediate after math of sandy, we also had the election going on, probably a small drop in government employment not going to affect the headline number significantly. >> and construction employment had been up for five straight honesties. you'd think post sandy we would get a bigger boost. >> we may see more of that boost in december simply because of the timing of when the survey occurred. we haven't seent pick up in terms of the recovery crews.

but the net effect of sandy i think we'll see some additional improvement in construction which as we've discussed before has been a lagging industry throughout the jobs recovery. >> okay. stay there, patrick. we'll come back to you in a second. what dunk the no you think the payrolls will be? e-mail us, worldwide@cnbc.com. tweet at krchl@cnbcwex or dire e me @rosswestgate. and we look at the continuing fiscal cliff discussions of course. after several days of public proceed announcements and posturing, budget talks have privately resumed before john boehner and the white house. the "wall street journal" says this breaks a new week long silence as that deadline looms. president obama and boehner spoke by phone on wednesday. they promised to renew the

negotiations. several top executives have also weighed in on thursday. >> there's been some movement. everybody realizes there has to be a revenue component, spend component, entitlement reform component. >> patrick, where does it hang on now for you? clearly the president last decided there has to be tax rises for the wealthy. if the democratic side can come up with entitlement cuts, maybe we get a deal. >> i think this is pure political theater. this is a situation that was created 18 months ago in order for the politicians to get by the election. now they've done so. we still confront the same fiscal unsustainability here in the united states that's been evident to everybody for the the past five, six years. what we all recognize is we need more revenue, we needless

spending, it's really a matter of a couple of adults getting in a room and figuring out how to resolve this temporary problem that they've created with an eye toward the long term on sustainability of our fiscal situation. >> so i guess what we'll swing around with it, let's suggest we get something that doesn't completely knock us off course next year. as i say, let's assume it doesn't completely blow off course and it works out, those discussions. we have housing recovery, some pent up demand, how much will these con friday bugs be next year in us actually having an okay economy in 2013? >> if we make two other benign assumptions, that about the eurozone and secondly about where the emerging economies are, i think overall 2013

assuming those all stay contained will be another year of positive growth. we see good numbers coming out of the household sector both in sentiment and in spending. it will be another year and those who have thought that the last 3 1/2 years of recovery have been pretty good should expect that they're going to see another year of that slow growth but positive growth in the united states economy. >> all right. patrick, stay there. we'll come back to you for one last discussion. before we do that, are you earning $250,000 or more? worried about having to pay more tax? hold your horses. you may be able to earn up to $300,000 and not have to hand over more cash to the irs. want to know how, head to cnbc.com to find out more. meanwhile what's on the agenda in the united states today, the jobs report and the first read on december consumer sentiment out at 9:55, forecast call for

sentiment to slip done nearly three points from november and at 3:00 p.m., we get october consumer credit. we'll take a short break. still to come, italian parliament is in turmoil. berlusconi's party taken back support from the current government. but could this mean the return of the former prime minister to politics. we'll get more from our correspondent. having you ship my gifts couldn't be easier. well, having a ton of locations doesn't hurt. and a santa to boot! [ chuckles ] right, baby. oh, sir. that is a customer. oh...sorry about that. [ male announcer ] break from the holiday stress. fedex office. ♪

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earthquake strikes the northeast coast of japan producing a meter high tsunami. sandy expected to make its presence felt again as november payrolls look set to fall. but bundesbank warns of an imminent recession in germany. italian president suggesting there is no political crisis this italy, trying to reassure investors after the party led by berlusconi has withdrawn support for the monti-led technocrat government. claudia joining us from milan. do investors share the president's reassuring noises or not? >> it's still -- judgment still out there. this market is down this morning. yesterday certainly will this

turmoil did affect the market. spreads spiked up. so of course the situation needs to be closely monitored. but the president of italy urges calm and responsibility to act in a reasonable way so it looks as though maybe something will be worked out. but the situation is really ultimately within the pdl. there are difficulties in trying to figure out how to move forward. the center left party seems to have let's say its act together more so than the pdl did. and berlusconi ultimately trying to gain support of the italians suffering because of the austerity measures as well as the slow growth. we did expect a difficult situation also in 2013 for the italian economy. so he's trying to get support there in order to try and be able to have some say in parliament once the elections come in. if the ghoechlt does not have the support of parliament and in the end this turmoil prevails, this would speed up the elections to february instead of march which was the date that we were expecting the general

elections to be. and that would actually probably block the passing of some legislation which if passed would probably harm berlusconi and his private interests. so that would be another reason for him trying to step in. but certainly it's not comforting that the past is coming back out there and an international standpoint that does put some concern on italy. back to you. >> claudia, thanks very much for that. still on come, a federal judge has urged samsung to bring global peace to the patent world. and also one american shopper is young, glamorous and armed. find out why the so-called multichan yell millennials are revolutionizing the retail industry.

ahead of the employment report, u.s. futures pretty cautious. dow called down 10, nasdaq down 3. retailer seeking new ways to boost holiday sales. our next guest says the secret could lie in tapping the purchasing power of multichannelly menials. according to a new study, they

represent the future of retail. digitally satisfactory and share an affinity for luxury, but they will go to great lengths to find bargains. jason, is it just a female phenomenon, the multichannel millennial? >> it's not, ross. people are out shopping. millennials have a lot of spending power. they're influencing more than $200 billion in hows it's spent. certainly women have more pension for style than men sometimes. so we like to think that's where the opportunity lies. >> why should they be taking note for retailers? >> as we're calling them this multichannel consumer, they are shopping with great veracity across in store, online and through mobile channels. and retailers really need to catch on and embrace the idea of multichannel marketing if they'll reach the consumer. they also because of social media have had the opportunity to create a between way dialogue

with retailers and retailers have gotten quite savvy with how to connect back with them and reward the consumer. >> so they're going both online, mobile, in store. so how do you get them to come to you? how do you say hf-get them to purchase from you? what is the secret? >> it's really about creating -- let's go cows what commerce means and worry less about where the transaction takes place. but focusing on marketing strategies that can connect the consumer across all of those different channels. >> so how do they actually shop? what's the percentage of people look on line before they go to look at something in store in in

practice? do they look in store and buy online? >> a little bit of both. 50% of respond geents in store only 3% exclusively online. 75% go to a retailer's website before they walk into the store. they're doing things like researching what product they want to buy, trying to find limited edition items they can't find anywhere else and they're also using it as a way to find discounts and deals that they might not be able to find by walking into the store. so research is so key with this particular demographic. that convenience translates in to their shopping experience. >> and what is the purchasing power? i mean in terms of actually how much cash have they got? are they impacted by the economy, how much are they actually spending on average? >> well, as i mentioned, they influence about $200 billion of

spending. they spend on average $3200 a year on apparel, accessories and footwear. that's 26% more than the average millennial consumer. so there is great up side for retailers to invest in strategies now to reach this consumer across all of these channels. and we believe certainly for the short term, but absolutely for the long term there's great opportunity. >> jason, thanks for that. now, a quick update on the situation in japan. according to the nhk news agency, tsunami warning for northeast japan has now been lifted. hurricane sandy, though, still making waves. analysts expect the super storm to dent unemployment figures out later today. we'll review that report when we come back.

here are the headlines. u.s. job growth is expected to have slowed significantly in november as hurricane sandy battered the economy. japanese authorities have lifted all tsunami warnings after a 7.3 magnitude quake struck off the northeastern coast. and bundesbank has sharply lowered germany's growth outlook from 1.6 to a mere 0.4%. it's warned of an imminent

recession as problems in europe periphery weigh. futures at the moment forecasts a soft start. down 15 at the moment on the dow, nasdaq currently called down 3.8, and s&p 500 around 1.5 points. european stocks are flat really. forgave points for the ftse, xetra dax is up though at it highest level since 2008. up nearly 28% this year. flat on the cac, ibex down two thirds. but hurricane sandy is expected to have put a pretty big accident in the november u.s. jobs report. it's out at 8:30 eastern. nonfarm payrolls are forecast to rise on the dow jones forecast by just 80,000.

it was 171,000 the figure in october. it would be the smallest job growth in five months. sandy, which struck at the end of october battered of course the densely populated east coast, but economists expect a snap back in december. unemployment rate seen holding steady at 7.9%. patrick o'keefe still with us. you already said you think the jobless rate might tick up and we should expect a figure of 40,000. if it actually comes in better than that, how would you consider it? >> i would consider anything above 40,000 new jobs as a positive report. so and i ronnicly, even though it was substantially below the 170,000 we've lnched over the last three months, anything above 40,000 indicates that the forward momentum of the job market continues. so here a negative number should be viewed positively. >> you've also been looking at unemployment insurance claims. what are you seeing there? >> one of the reasons my forecast is a little bit below

everybody else, because i'm really struck by the fact that in the couple of weeks immediately after sandy, applications for unemployment benefits jumped by one third. that's a tremendous number. and would indicate that the reports of unemployment job growth will be substantially weaker than many think. >> what's going on with job holding in general, patrick? >>off all what we were seeing pre-sandy is that the rate of job holding was increasing. we're not back to where we would like to be, but we have seen marked improvement over the last year in the number of individuals who have jobs. and that trend accelerated toward the end of the summer quarter. overall the momentum going forward looked very positive. >> patrick, thanks for that. good to have you on this morning. we'll see what happens. the bundesbank has warned of a

possible recession in germany. the central huang cut its growth forecast to the eurozone biggest economy and expects growth to reach 0.7% in 2012 and just 0.4% in 2013 compared with a previous forecast of growth of 1.6. and give peace a chance, that was a federal judge's message to apple and samsung. she's currently examining the $1 billion jury verdict awarded hinting that the sum could be substantially reduced. a series of rulings expected in the coming week. >> christopher, what would be a substantial reduction in terms of monetary amount do you think?

>> we're talking nipping at the edges, $100 million, $50 million, some attempts he i suppose to wipe the entire thing out by samsung by arguments regarding jury misconduct. but based on yesterday's hearing, it didn't seem like the presiding judge wanted to hear much about that. >> what argument is there from samsung to get something back in their favor? >> at stake in the case was various intellectually property rights found to be infringed. utility patents, design patents, and what the jury's finding was sort of like a black box, just a singular finding of a total dollar amount for each product. so with the judge making findings regarding each one of those types of patents, the damages cal could you slags different it for each one of those. if only one is left standing,

you would use a different damages calculation. so the judge is trying to reverse engineer to find out how the jury arrived at its damages findings. >> samsung is trying to get a new trial to be held. is there any hope in that? >> that's sort of the hail mary pass, if you will. if they can succeed with that argument, yes, it could potentially wipe out the entire judgment. but conventional wisdom, it's an uphill battle. >> whatever her decision is, how whether it shape the rest of the case? because presumably they'll keep fighting, it will go to appeals and who knows, might go all the way to the supreme court.

what will her decision mean for the rest of the journey of this battle? >> you're right, we can anticipate that it will go up on appeal. i think the dollar amount that we're talking about, if there is ever going to be any settlement discussions, what the dollar amount is where the parties will be working from. the scope of the injection is another important thing. that could potentially go into effect immediately. so if there is a brad scope, that would perhaps spur the parties to want to come to the negotiation table even quicker. so there are some things she can do. the larger issues is of course how this all impacts how parties use intellectual property the and also how the devices might look as far as design. the rights have largely lived in the back waters of the ip world,

but companies have taking a second hard look at design rights. >> as fascinating judgment here where one of the judges said samsung didn't look like their were infringing because their products weren't as cool as apple's. which is a strange phrase. but this is a nebulous kind of area. >> it can be, but very impactful upon the consumer's purchasing decision and this very case shows that both apple and samsung appreciate that fact. sort of a top down understanding of the importance of design. >> good to speak to you. thanks for joining us. meanwhile in an exclusive interview, tim cook has been explaining to brian williams why the silicon valley giant has so far kept the majority of its production in china. >> why can't you be a made in

america company? >> this iphone as a matter of fact, the engine in here is made in america. and not only are the engines in here made in america, but engines are made in america and are exported. the glass on this phone is made in kentucky. so we've been working for years on doing more and more in the united states. next year we will do one of our existing mac lines in the united states. >> let's say barack obama called you in tomorrow and said get everybody out of china and do whatever you have to do, make these, make everything you make in the united states, what would that do to the price of this device? >> honestly, it's not so much about price, it's about the skills, et cetera. over time, there are skills that are associated with manufacturing that have left the u.s. >> how do we get that back?

>> it's a concerted effort to get them back. and with this project that i've talked about where we do a mac in the united states next year, i think this is a really good another step for us. consumer electronics world was never really here. so it's a matter of starting it here. >> thanks for joining us here. >> while steve jobs liked to avoid the spotlight, he also thrived on it. it was as if he was selling products that were pieces of his own soul. he was inventor, pitch man and new wave pied piper all in one. tim cook is just a different guy. while he believes in the all mighty product just as much. >> how are you not steve jobs? >> in many ways one of the things he did for me that removed a gigantic further that would have normally existed is he told me on a couple of occasions before he passed away

to never question what he would have done. never ask the question what steve would do to just do what's right. >> brian williams talking to tim cook. nigeria named one of the most corrupt countries. we'll ask if it's a safe destination for your money. finance minister will join us next. and we can save you 10% on ground shipping over the ups store. look this isn't my first christmas. these deals all seem great at the time... but later... [ shirt ] merry christmas, everybody! not so much. ho ho ho! this isn't that kind of deal. [ male announcer ] break from the holiday stress. on ground shipping at fedex office.

is an decide expected to make its presence felt again as november payrolls set to fall. tsunami warnings have been lifted after a 7.3 magnitude quake struck japan's northeast coast. and bundesbank has cut growth forecasts and warns of an imminent recession in germany. big new film coming out. an nbc product and based on victor hugo's classic novel about love, life and class warfare. it was transformed in to a musical, now hitting the big screen. carolyn went to speak to the stars to find out why the classic story still resonates with audiences. it is of course les mis. ♪ i dreamed a dream and time

gone by, hopeless high life worth living ♪ >> i think that human truths are human truths and there's also a certain cycle to the world. >> just a look at the world and humanity and we will always be moved by a passion for fighting for what we believe in, we'll always be moved pie love, the power of redemption, all themes that transcend time. >> les mis has been performed 10,000 times and seen by 16 million people. and now it's a major motion picture featuring hugh jackman and anne hathaway. so what does it take to transform wolverine and cat woman? >> i wore contact lenses to give the redness in the eyes. i spent time in a prison here in london just to talk to prisoners

and soak up the atmosphere. >> there was moment the where most female audiences would drink when your hacringe when y hacked off. >> it hit me at once. and i was very fragile that day and i was a total wreck.off. >> it hit me at once. and i was very fragile that day and i was a total wreck. >> what stands out is the hardship that goes right through to the very end. do you think as a result it will resonate with the audience? >> while we were making the film every day going to work, there was something relevant in the headlines that related to what the film was about. so from my character's point of view, the student rebels trying to light this flame to start a rebellion, whether it was what was going on in wall street or in the protests there or in support in london or what was happening in the middle east, it

felt relevant. >> of course the occupy movement was on. the arab spring movement, the recession, the disparity of rich and poor seems to be ever glowing. and sort of what he was talking about at the time. and i think probably in fact almost any point this history and in the future, victor hugo's novel will be relevant.